In a perfect world, every entrepreneur would have the resources necessary to transform a killer business idea into a smashing success. However, as you know by now, that’s not how it works.
Related: 5 Main Reasons Banks Turn Down Small-Business Owners for Loans
In fact, having a great idea is only part of the equation: At some point, most entrepreneurs need a small business loan. Unfortunately, however, getting approved for a loan can be challenging if you don’t have all of your proverbial ducks in a row.
Five tips for getting approved
When it comes to getting a small business loan, you have to put yourself in the shoes of the bank or financial institution that you’re interacting with. If you were in their role, would you feel confident loaning money based on the set of circumstances and factors an applicant provided, and the interview process? Once you flip the script and look at things from their perspective, you should be able to see your situation in a less biased light.
That being said, here are a few tips for getting approved.
1. Start the process asap.
You aren’t going to walk into your local bank, fill out an application, and get approved for a loan on the spot. The approval process can take weeks, if not months to unfold. That’s why it’s best to start the process as soon as you can. Don’t wait until you need the money or you may end up with your back against the wall.
2. Deal with your credit history.
While you may desire separation between your business and personal finances, lenders will factor in your personal credit history when determining your risk level as a borrower — there’s simply no way around it.
If you’re worried about this part of the process, focus on some ways to…